The road to decision quality

© 2013 Nexen Inc.

THE ROAD TO DECISION QUALITYSCOTT BARTSCH, PENG MENG PMP

DIRECTOR OF DECISION ANALYSIS, NEXEN INC.

© 2013 Nexen Inc.© 2013 Nexen Inc.

AGENDA

1 ORGANIZATIONAL DECISION QUALITYWhat’s the motivation?

2 THE CHALLENGEWhy is achieving organizational decision quality difficult?

3 THE ELEMENTSWhat are the key considerations to developing a solution?

4 THE MODELWhat does the framework look like?

5 THE VALUEWhat benefits can we expect?

6 THE ROADWhat’s worked and what hasn’t?

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ORGANIZATIONAL DECISION QUALITY

Decision Quality

Alignment

Consistency

Capability

Application

Culture

3


THE CHALLENGE

EMPLOYEES LEADERS

Motivation (executive commitment)

DA IMPLEMENTATION

Motivation(leadership commitment)

Motivation(personal)

Impact(personal)

Impact(work)

Alignment (culture & process

integration)

Fear(unknown future)

Fear(unknown future)

Capability(management training)

Security(job)

Security(control / power)

Involvement

Source: Prosci Benchmarking Report Source: DAAG 2012

4


THE ELEMENTS

CultureAttitudesBeliefsCustoms

Change Management

AwarenessDesireKnowledgeAbilityReinforcement

Project Management

CharterRoadmapGovernance

AnaloguesSafety

5


THE MODEL - MATURITY

IMPROVINGContinuously improving

PERFORMINGConsistently delivering

ESTABLISHINGOrganizational commitment

MANAGINGDemonstrating value

EMERGINGExecutive commitment

PEOPLE PROCESS SUPPORT

5

4

3

2

1

6


THE MODEL - MATURITY

IMPROVINGContinuously improving

PERFORMINGConsistently delivering

ESTABLISHINGOrganizational commitment

MANAGINGDemonstrating value

EMERGINGExecutive commitment


5

4

3

2

1Ad hoc

Definitions

Guidance Documents

Standards

Policies

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THE MODEL – KEY RESTULTS


ESTABLISHINGOrganizational commitment3

SHARE raise awareness, share information and leverage corporate skillsand expertise

DEVELOP develop internal DA skills and competency

APPLY demonstrate the value of DA through practical application

SUPPORT establish an organizational structure that supports internal practitioners

ALIGN define, integrate and support a common approach to decision analysis

ENABLE provide enabling tools and applications to support the practicalapplication of DA

MANAGE apply principles of fair process and stage-gate governance to deliver objectives.

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THE MODEL - APPROACH

CENTRALIZED

DECENTRALIZED

central, internal consulting group network of practitioners supported by central group dispersed network of practitioners

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THE MODEL - GOVERNANCE

IMPLEMENTATIONLEADSProvide support, expertise and recommendations to the implementation team and local practitioners

PRACTITIONERSApply DA principles for day-to-day asset management

SUBJECT MATTER EXPERTSResponsible for supporting implementation team, leads and practitioners

IMPLEMENTATIONTEAMResponsible for successful project delivery

STEERINGCOMMITTEEReview recommendations and make DA implementation decisions.

ADVISORYGROUPChampion global DA implementation, ensure key stakeholder support and provide expertise and guidance to the steering committee

ADVISORY & FEEDBACK PATHDECISION MAKING PATH

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THE MODEL – VALUE

ORGANIZATIONAL DECISION QUALITY MATURITY

EVALUATION

IDENTIFY STRENGTHS & AREAS FOR

IMPROVEMENT

BENCHMARK (INTERNAL AND EXTERNAL)

ALIGNMENT

OBJECTIVES CLARITY

IMPLEMENTATION

FRAMEWORK FOR ACTION

DEFINE LONG-TERM SUCCESS

SHORT-TERM TARGETSROLLING WAVE PLANNING

STATUS & PROGRESS MEASUREMENT

EXPECTATION MANAGEMENT

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THE ROAD

EXECUTIVE SPONSORSHIP

RESOURCES

CHANGE*

EXECUTIVE SPONSORSHIPGRASS ROOTS SUPPORT

SUBJECT MATTER EXPERTSSKILL DEVELOPMENT

BUSINESS PROCESS ALIGNMENT

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GET BEHIND THE WHEEL

13

The road to decision quality

Education

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